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Since its inception in 1992, The California Wellness Foundation has pursued its mission — to improve the health of the people of California by making grants for health promotion, wellness education and disease prevention — in accordance with the fundamental principles of transparency, equity and fairness.

This section explains, in a question-and-answer format, how our Foundation adheres to its fundamental principles in setting grantmaking, personnel and investment policies. We hope this section will give you a fuller understanding of the safeguards we put in place to ensure that we are accountable, ethical and responsible in our stewardship of grant dollars.

Does the Foundation have a code of ethics?
What are the Foundation’s core values?
How does the Foundation avoid conflicts of interest?
How is compensation for staff and Board members determined?
How does the Foundation ensure that its grantmaking process is equitable and fair?
How are grants monitored?
Under what circumstances can a grant be rescinded?
How does the Foundation measure the effectiveness of its grantmaking?
How does the Foundation evaluate its relationship with Grantees?
How does the Foundation promote inclusiveness in hiring, retention, promotion and Board recruitment, and among the constituencies served?
Does the Foundation fund political or partisan activities?
How can I get more information about the Foundation's grants and finances?
What are the Foundation’s investment policies?

Does the Foundation have a code of ethics?

Yes. The Foundation embraces a set of core values and puts them into practice in its dealings with the public and with professional colleagues, as we work to improve the health of the people of California.

Our work is also guided by policies that ensure all our activities reflect our commitment to fiduciary responsibility, accountability, transparency, diversity and ethical behavior.

These organizational principles and their associated policies are set out in several documents developed during the last ten years for our staff and Board members, including our Board Manual, Employee Handbook and Policies and Procedures Manual. Much of the information in this fact sheet comes directly from these sources.

Additionally, the Foundation upholds standards set forth in “Recommended Principles and Practices for Effective Grantmaking,” developed by the Council of Foundations.

What are the Foundation’s core values?

• RESPECT: Demonstrating consideration for each other and our constituencies. Listening to and honoring different perspectives.
• INTEGRITY: Demonstrating honesty, fulfilling commitments and keeping our word.
• ACCOUNTABILITY: Being responsible for our actions and adhering to the Foundation’s mission and values.
• EQUITY: Demonstrating fairness, impartiality and justice in all phases of our work.
• STEWARDSHIP: Acknowledging that the resources of the Foundation are a public trust and are to be used responsibly and for their intended purpose.
• EXCELLENCE: Demonstrating a strong work ethic and developing high-quality products.
• LEARNING: Demonstrating a commitment to continuous learning as individuals and as an organization.
• TRUST: Demonstrating acceptance and respect for differences while embracing and practicing organizational values.

How does the Foundation avoid conflicts of interest?

The Foundation has adopted a conflict of interest policy for its Board of Directors and staff, which mandates:

1. responsibility for awareness of actual or perceived conflicts of interest;
2. disclosure of any conflicts prior to any funding considerations; and
3. assurance that reviews and decisions for grant approval are based on objective consideration by disinterested parties with no vested interest in the outcomes.

Board members and exempt employees are required to fill out a Disclosure of Interest form and update it on an annual basis. Board members are required to recuse themselves from voting on any grant that poses a potential conflict of interest.

Employees are allowed to serve on boards of directors or committees of other organizations outside the Foundation, but in cases of potential conflict of interest, membership requires approval from the President and CEO.

How is compensation for staff and board members determined?

Compensation and benefits for staff and Board members are determined on the basis of benchmarks derived from the compensation policies of peer organizations with a similar asset size. These benchmarks are researched by independent consultants every three years. The Board of Directors reviews the consultants’ reports and sets compensation policies accordingly.

Every year, the Compensation Committee of the Board of Directors reviews independent reports on nonprofit salary increases. Based on this review and other factors, the committee recommends a salary pool increase for approval by the Board.

The Board’s Executive Committee reviews CEO compensation annually, based on reports from independent consultants. The CEO’s performance is also reviewed on an annual basis. The CEO recuses himself from these deliberations.

Staff performance is appraised twice a year by a performance review that tracks progress toward performance goals for each position with the Foundation. Staff members also share a common goal: “To demonstrate a positive attitude by practicing the Foundation's core values through respectful interaction with all staff and constituents.”

To ensure proper checks and balances, a staff member’s immediate supervisor and a second-level supervisor sign off on performance reviews. Staff who receive satisfactory reviews are eligible for annual salary increases, when they are available.

How does the Foundation ensure that its grantmaking process is equitable and fair?

The Foundation’s resources are insufficient to fund all the grant requests submitted each year. Accordingly, we have developed a process for grant funding review and decision-making that takes into account the critical need for effectiveness, efficiency and objectivity.

Our rigorous, structured approach combines proactive and responsive grantmaking styles. Grants result from two different strategies. Unsolicited letters of interest (LOI) may be submitted by organizations in accordance with the Foundation’s published application guidelines. Staff also proactively solicit LOIs from organizations that are believed to possess the experience and capacity to address a specific challenge.

In reviewing LOIs, staff are guided by the Foundation's principles and goals, as well as by the health issues prioritized for funding by the Board. Staff also consider the geographic region served by the applicant. Specific policies are in place to ensure that grant dollars are allocated equitably throughout the entire state.

We provide specific guidelines to assist applicants who have been invited to submit a full proposal. Staff conduct a site visit as part of the review process. To ensure thorough scrutiny, staff may request a review of the proposal by an outside expert. We call this process “due diligence.”

If a program director determines that a proposal is a candidate for funding, it is recommended for submission to the quarterly grants meeting. If executive staff concur with the recommendation, the proposal is presented to the Board for approval. The Board reviews the recommended grants and votes on them.

How are grants monitored?

Once a grant has been approved by the Board and a grant agreement letter has been signed, a structured monitoring process begins.

Grantees are required to submit brief annual reports that follow a prescribed format for describing progress towards objectives and itemizing expenditures. Midway through the grant period, all Grantees have a conversation with Foundation program staff, either in person or on the phone. Grantees may also receive an “exit interview” at the close of the grant.

Thirty days after the end of the award period, the Grantee must send a final report that describes the results of the grant and presents a final tally of expenditures. Once the final report has been received, staff complete a closeout report. The Board receives a summary of this report.

Under what circumstances can a grant be rescinded?

A grant may be rescinded if the grant funds have not been expended as specified in the grant agreement letter, or for material failure to comply with the terms of the grant, including failure to submit required progress reports. Because such a decision has serious consequences, the procedure for rescinding a grant involves careful documentation, review by executive staff and legal counsel, and an appeals process.

How does the Foundation measure the effectiveness of its grantmaking?

Central to the Foundation’s conception of stewardship is a commitment to hold ourselves accountable to high standards regarding the quality of our work and the effectiveness of our grantmaking. We expect our Grantees to hold themselves to a similarly high standard of performance.

Our expectations are tempered by an awareness of the complex task of evaluating the kinds of programs we fund, as well as by the trade-offs involved in determining the appropriate funding level for those activities.

We have commissioned evaluations of all of our former initiatives, many of which can be found in our online evaluations section. Our Reflections series shares lessons learned on a variety of philanthropic topics. Additionally, at the end of each grant, program staff write a close-out report that assesses the overall effectiveness of a Grantee’s performance, a summary of which is reported to the Board.

These efforts enable the Foundation to assess on an ongoing basis to what extent its grantmaking is achieving the mission of improving the health of the people of California.

How does the Foundation evaluate its relationship with Grantees?

Approximately every three years, the Foundation conducts a Grantee survey. Grant applicants are asked how they heard about the Foundation, how accessible and useful they find its materials and information, how well they were treated by the staff and how the Foundation could improve its philanthropic activities.

The most recent survey was conducted by the National Health Foundation and published in 2006. A report of its findings was shared with the public and made available on our website. Questionnaires for the survey were mailed or e-mailed to every organization that received and/or applied for funding from TCWF in 2005.

How does the Foundation promote inclusiveness in hiring, retention, promotion and Board recruitment, and among the constituencies served?

Given the diversity of California’s population, the Foundation seeks to engage individuals on its Board and staff who are representative of that diversity and committed to incorporating the values of pluralism and inclusiveness into every aspect of their work. We also seek to fund organizations that embrace those values in their mission and activities.

Our commitment to diversity is shaped by the conviction that all segments of society benefit from pluralism and equal opportunity. The diverse composition of our staff, Board, Grantees and populations served illustrates that we honor this commitment.

Does the Foundation fund political or partisan activities?

By law, the Foundation cannot participate in a campaign for or against a political candidate, cannot lobby with respect to specific legislation and cannot distribute its funds to influence specific legislation or the outcome of an election.

The Foundation does make grants to organizations to inform the development of public policies that promote wellness and enhance access to preventive health care. Such grants have been given to nonpartisan groups that train health policy advocates or provide policymakers with information and research on health issues.

How can I get more information about the Foundation's grants and finances?

A list of grants awarded, along with TCWF's audited financial statements, can be found in our Annual Report.This information is also contained in our annual 990-PF IRS statement, which is available online at Guidestar (free registration required).

What are the Foundation’s investment policies?

The investment program of the Foundation is guided by its Investment Policy Statement, which incorporates TCWF’s policies, objectives, long-term asset allocation plan and implementation program for asset management.

Under the direction of the Board of Directors and the Finance Committee, the Foundation has created a diversified investment program that provides returns consistent with the Foundation’s risk tolerance and complies with all applicable regulations. The program utilizes highly qualified investment managers with demonstrated skill in the asset classes represented by the Foundation’s holdings. The Finance Committee meets four times each year to review the performance of the Foundation’s investments and discuss investment policies.